Case Law Details
Roseberry Mercantile Pvt. Ltd. Vs ACIT (ITAT Delhi)
Conclusion:
While on search nothing adverse was found so as to prove that documents filed during original assessment proceedings were false or untrue, AO on same set of material could not take a different view than already taken at the time of original assessment merely because a search had taken place.
Held:
Original assessment was completed u/s 147/143(3). A search u/s 132 was conducted in the case of bank account of assessee and an amount of Rs.5,48,50,000/- was seized. Since assessee did not file the requisite details as called for by AO to substantiate the identity and credit worthiness of the share applicants and genuineness of the transactions, AO made addition of unexplained share capital and unexplained share premium received by assessee during the impugned assessment year. Assessee contended that no incriminating material was found during the course of search and AO in the assessment completed u/s 147/143(3) had accepted such share capital and share premium and no contrary material was found during the course of search or after post search inquiry. It was held when assessee during the course of reassessment proceedings had filed the requisite details such as the copies of share applications, bank statements including details of allotment, premium charge, etc., and nothing adverse was found during the course of search proceedings and considering the fact that nothing adverse during post search inquiries was found to negate the documents already filed at the time of the reassessment proceedings, the present AO, on the same set of material could not take a different view than the view already taken by his predecessor at the time of original assessment merely because a search had taken place. In view of the above discussion, addition made by AO was not justified. Accordingly, AO was directed to delete the addition made by him u/s 68.
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